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Sholpan [36]
2 years ago
14

You tell your grandmother about a car you’re thinking of buying and, as expected, she tells you a story about buying her first b

rand new car for $1,500. You feel envious of older generations and wish you could buy a new car for $1,500. Because you are focusing on________ dollar amounts rather than __________ dollar amounts, you are failing to recognize that the _________ price of your grandmother's car in today’s dollars would _________ $1,500.
Business
1 answer:
Basile [38]2 years ago
5 0

Answer:

<em>You feel envious of older generations and wish you could buy a new car for $1,500. Because you are focusing on</em><em> </em><em><u>nominal</u></em><em> </em><em>dollar amounts rather than </em><em><u>real</u></em><em> dollar amounts, you are failing to recognize that the</em><em> </em><em><u>real</u></em><em> </em><em>price of your grandmother's car in today’s dollars would </em><em><u>greater than</u></em><em> </em><em>$1,500.</em>

Inflation makes the value of a currency i.e. the dollar, become less valuable overtime because it is eroding the currency's value. When a currency is adjusted for the effects of inflation, we see the real value of the currency but when it is not, this is the nominal value.

In the text above, the $1,500 is the nominal value in the past. If this value were to be adjusted for inflation in terms of today's dollars, it would show a greater amount than $1,500 because inflation has diminished the value of $1,500 such that it is not worth as much as it was worth in your grandmother's time.

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Answer:

The correct answer is letter "E": All of the above may be deductible as itemized deductions .

Explanation:

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3 years ago
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For the following statement, move the endpoints of the demand curve to create the demand relationship that is described. "I spen
Akimi4 [234]

Answer:

Explanation:

"I spend more on orange juice even as the price rises".

This implies that orange juice is not an inferior good because people demand less of an inferior product when their prices fall. In this case more is demanded as price rises implying that orange juice is being viewed as a luxury good or healthy drink. Consumers tend to interpret certain price increase positively and view the goods as superior.

Does this mean that I must be violating the law of demand?

YES

Generally, the law of demand states that, "citeris paribus  (with all things being equal), as the price of a good rises, quantity demanded falls; conversely, as the price of a good falls, quantity demanded increases".

Therefore if "I spend more on orange juice even as the price rises", then obviously the law of demand is being violated

3 0
3 years ago
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year,
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Answer:

The appropriate answer is "$22,305".

Explanation:

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By substituting the values, we get

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Vadim26 [7]

Answer:

A party wall  

Explanation:

A party wall  

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